Kenya Equities Market Weekly Digest – Week Ending January 31, 2025

The Kenyan equities market experienced a downturn this week, with all major indices recording declines. The market was largely affected by significant losses in large-cap stocks, outweighing the gains observed in select counters.

Market Performance Overview

• NSE 10 declined the most by 4.3%
• NSE 25 fell by 3.7%
• NASI recorded a 3.2% drop
• NSE 20 experienced a more moderate decline of 1.1%

Year-to-Date (YTD) Performance:

• NSE 20: +5.0%
• NASI: +2.3%
• NSE 10: -1.1%
• NSE 25: -0.6%

Key Market Movers

Top Losers

• Safaricom (-9.0%) 📉
• KCB Group (-6.7%) 📉
• EABL (-6.6%) 📉

Top Gainers

• Bamburi Cement (+7.7%) 🏗️
• Co-operative Bank (+2.2%) 🏦
• Stanbic Holdings (+0.7%) 🏦

Corporate Earnings Updates

Kenya Power & Lighting Company Plc (KPLC) – H1 2025 Results

Kenya Power released its half-year (H1 2025) financial results for the period ending December 31, 2024, posting a remarkable 3,025.4% increase in Profit After Tax (PAT) to Kshs 10.0 billion, up from Kshs 0.3 billion in H1 2024.

📊 Key Drivers of Growth:

• Finance costs reduced by 86.9% to Kshs 1.9 billion, down from Kshs 15.0 billion in H1 2024.
• Cost of sales declined by 14.1% to Kshs 71.3 billion, compared to Kshs 83.0 billion in the previous period.
• Revenue, however, dipped by 5.4% to Kshs 107.4 billion, down from Kshs 113.6 billion, mainly due to lower pass-through costs and tariff adjustments.

East African Breweries Plc (EABL) – H1 2025 Results

EABL reported a 19.6% increase in Profit After Tax (PAT) to Kshs 8.1 billion, up from Kshs 6.8 billion in H1 2024.

📊 Key Performance Highlights:

• Finance costs fell by 14.4% to Kshs 3.4 billion, down from Kshs 4.0 billion in H1 2024.
• Net revenue grew by 2.1% to Kshs 67.9 billion, up from Kshs 66.5 billion.
• Operating costs rose by 4.9% to Kshs 13.7 billion, compared to Kshs 13.1 billion in H1 2024, weighing down overall profitability.

Market Insights & Takeaways

• Investor sentiment remains cautious amid earnings releases and market fluctuations.
• Banking and consumer goods sectors remain in focus, with mixed results from major players.
• Market volatility is expected as investors digest earnings reports and macroeconomic trends.

Looking Ahead

Investors should monitor corporate earnings announcements and global economic trends to anticipate market movements. With mixed performance across sectors, diversification remains key in navigating market uncertainties.

📢 Stay updated with NuPath Advisory for more market insights and investment updates!